Retirement at Age 62

Age Retirement at 62 — “To do or not to do”

In a nutshell, take the money and run! The Social Security Administration’s official, yet unarticulated position on the question is geared heavily toward preserving the Retirement Trust Fund and subtlety encourages folks not to file for early retirement. The same holds true for purported senior advocate entities. They all approach the issue in an opaque manner.

Given the “preserve the Trust Fund” emphasis, it is little wonder the agency does not take a balanced public stance in discussing early retirement as an option. Taking early retirement at 62 (as opposed to now full retirement at 66) results in a reduction of an individual’s monthly check by approximately 25%. However, you will receive the reduced benefits for 4 years before you attain age 66. Granted, an individual will receive the reduced amount even after he/she attains age 66, it will take years before they would arguably start to lose any money. In addition, taking retirement at 62 would allow you to still work and earn about $13,000/year before experiencing any offset of benefits, and take advantage of cost-of-living increases and the like.

You have to also consider your health…

Remember, if you die before you reach age 66 and retire, and you have no survivors who are eligible for full benefits on your record – those benefits are gone forever.

The SSA actuaries and bureaucrats are basically betting and hoping that you die before you retire…because that would help protect the solvency of the SSA Retirement Trust Fund. Visit SSA’s web-site (ssa.org) to review a chart with specifics on benefit reduction at any given age.

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